The financially embattled city of Stockton, Calif. – whose recent claim of bankruptcy began a trend in other broke California communities – is now being challenged on the credibility of its bankruptcy claim. The city is instead being asked to chop its pensions rather than saddle outside companies with the debt.
According to Reuters, two of the city's bond issuers have called the bankruptcy into question as it left pensions intact, favoring the California Public Employees' Retirement System over the bond debt obligations.
CALPERS is the country's largest public pension fund, and has recently announced its own troubles as its $234 billion pension system, serving 1.6 million state employees, only saw a 1 percent return on investments last year.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
